Schneider Electric has agreed an all-cash deal for US engineering software group PTC at $205 a share, a 42.3% premium to Friday’s close, while its own shares fell sharply in Paris.
Schneider Electric (EPA: SU) has agreed to buy PTC (NASDAQ: PTC) for $205 a share in cash, turning yesterday evening’s talks reports into a signed deal.
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Schneider is the French electrical equipment and automation group; PTC, based in Boston, makes design and product-lifecycle software for manufacturers. Both boards approved the deal unanimously.
PTC closed on Friday at $144.03, before the Financial Times and Bloomberg reported the talks, so the offer is 42.3% above its last undisturbed price. US trading opens at 2.30pm UK time. Schneider’s shares fell as the deal was announced, trading at 279 euros by about 8.17am against Friday’s 303 euros, a drop of about 8%.
The deal values PTC’s equity at about $22.6bn and is expected to close by the third quarter of 2027. Including debt, the enterprise value, which is equity plus net debt, is $23.7bn. Schneider said a bridge loan from Morgan Stanley and Société Générale will fund the price at first.
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Permanent funding, Schneider said, will be €5-6bn of new shares and €16-17bn of new debt, with buybacks paused in 2027 and 2028. The $205 offer is also about 18% above the analyst average price target of $174.21. PTC’s 2025 revenue was about €2.4bn at an adjusted EBITA margin near 40%, Schneider said, and it expects about 10% annual growth to 2029.
PTC closed at $144.03 on Friday, against the $205 a share cash offer from Schneider Electric. The talks report and the announcement both came after this chart’s last data point.
Olivier Blum, Schneider’s chief executive, said of the deal:
Together, we are creating the industry’s most complete Software & AI powerhouse.
Olivier Blum, Schneider Electric
The deal adds PTC’s design (CAD) and product-lifecycle (PLM) software to AVEVA and to Cognite, the data software provider Schneider agreed to buy last June, and would lift software and services to about 24% of group revenue.
Completion still needs a PTC shareholder vote and regulatory approvals, so PTC holders carry deal risk until the third quarter of 2027. What the price means for other industrial software valuations is an open question. Schneider will publish third-quarter revenue early, on the 16th of October.
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